Employee clubs, activities & gifts
There are heaps of possibilities when it comes to this category of the employee benefits package: knitting clubs, running groups, (video) game nights, Secret Santas, anniversary gifts, you name it.
What are employee benefits?
Employee benefits cover the indirect pay of your workforce. This can be health insurance, stock options, or any myriad of things offered to employees. While two jobs can offer the exact same salary, they can vary greatly in terms of benefits, hence making one offer a better financial proposition than the other. This highlights the importance of employee benefits in a job offer.
Some employee benefits are country-specific. In the US, for instance, health insurance is a key component of employee benefits packages and in France, many employees get restaurant vouchers for every workday.
Providing fair, performance-based compensation is an inextricable part of human resource best practices. Compensation and benefits go together, with the former covering your employees’ salary. For an in-depth article on this key element of Human Resource Management, check out our full guide on Compensation and Benefits.
What are employee benefits?
This employee benefits definition points to examples of job benefits such as insurance (including medical, dental, life), stock options and cell phone plans. But, employee benefits can be much more than these, from training opportunities to startup perks (let’s not focus on the notorious ping pong tables, though).
Benefit packages take a lot of time out of many HR professionals’ time. And with good reason: they’re one of the most basic employee engagement and retention strategies, and they support talent attraction as well.
The numbers speak for themselves about the importance of employee benefits. Extensive research by the Society of Human Resource Management (SHRM) indicates that 92% of employees consider employment benefits as important for their overall job satisfaction (in itself, a great element of retention and productivity). Almost one third of employees also cited work benefits as the top reason of looking for a job outside their organization; and for choosing to stay at their job, too.
Benefits are also among the top driving factors candidates look for in job ads – 63% of job seekers surveyed say they pay attention to what benefits a company offers. This means that offering benefits, and mentioning them in your job ads and careers page, is a great part of your employer branding efforts.
Employee benefits also help you take care of high-performing employees without the need to keep investing in exceptionally high pay raises. All employees should get paid enough to pay the bills and live comfortably, but they might accept less pay if they have strong health insurance, flexible hours and other benefits important to them. The practice of employees giving up a part of their salary for benefits is called salary packaging, and may also result in tax deductions or other gains for either party.
Need to build your company brand?
More Company-Provided Employee Benefits
Dental Care Plan Coverage: Companies with dental care benefits offer insurance that helps pay a portion of the cost of dental treatment and care. Depending on the company’s policy for dental care benefits, dental coverage includes a range of treatments and procedures.
Paid Holidays: The law does not require employers to provide their employees with paid leave for holidays. However, many employers make sure that their employees get time off for holidays (paid and unpaid) or provide overtime pay for those willing to work on a holiday.
Pay Raises: Some employers increase wages for everyone by a certain amount each year to keep up with inflation. There are also different types of incentive pay that allow employees a chance to earn more on a merit system. A common type of incentive pay is commission. Inside sales or customer service employers frequently try to motivate employees to upsell customers for a commission.
Severance Pay: Employers are not required to provide severance to employees that they lay off due to downsizing or redundancies. However, many employers want to help these employees who they would otherwise want to keep if their budget permitted. Therefore, they choose to offer severance pay and benefits to these employees.
Breaks and Flexible Schedules: To attract top talent, some employers offer flexible paid work schedules that include 30-minute (or longer) breaks for rest, fitness, and recreation. Also, employers may compensate employees for meals and events that include face-to-face time with prospects and customers.
Hazard Pay: Jobs in security, construction, military, and other dangerous professions usually provide hazard pay to any employees that must work in unsafe conditions. These may include extreme weather, dangerous equipment, violent environments, or working at extreme heights, for example.
College Debt Assistance: Because of the growing student debt crisis, some employers are granting debt repayment assistance. There are no current laws requiring employers to do this, but it is a great perk for employees struggling to make ends meet as they begin their professional careers.